Clusters, Connectivity and Catch-Up: Bollywood and Bangalore in the Global Economy

Journal of Economic Geography, Forthcoming

Posted: 2 Aug 2012

See all articles by Mark Lorenzen

Mark Lorenzen

Copenhagen Business School - Department of Innovation and Organizational Economics

Ram Mudambi

Temple University - Department of Strategic Management

Date Written: June 12, 2012

Abstract

In this article, we make two important contributions to the literature on clusters. First, we provide a broader theory of cluster connectivity that has hitherto focused on organization-based pipelines and MNE subsidiaries, by including linkages in the form of personal relationships. Second, we use the lens of social network theory to derive a number of testable propositions. We propose that global linkages with decentralized network structures have the highest potential for local spillovers. In the emerging economy context, our theory implies that clusters linked to the global economy by decentralized pipelines have potential for in-depth catch-up, focused in industry and technology scope. In contrast, clusters linked through decentralized personal relation- ships have potential for in-breadth catch-up over a range of related industries and technologies. We illustrate our theoretical propositions by contrasting two emerging economy case studies: Bollywood, the Indian filmed entertainment cluster in Mumbai and the Indian software cluster in Bangalore.

Keywords: clusters, social networks, multinational firms, diasporas

JEL Classification: F23, F22, R11

Suggested Citation

Lorenzen, Mark and Mudambi, Ram, Clusters, Connectivity and Catch-Up: Bollywood and Bangalore in the Global Economy (June 12, 2012). Journal of Economic Geography, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2122256

Mark Lorenzen (Contact Author)

Copenhagen Business School - Department of Innovation and Organizational Economics ( email )

Kilevej 14A
Frederiksberg, 2000
Denmark

Ram Mudambi

Temple University - Department of Strategic Management ( email )

Fox School of Business and Management
Philadelphia, PA 19122
United States
215-204-2099 (Phone)
215-204-8029 (Fax)

HOME PAGE: http://sbm.temple.edu/~rmudambi/index.html

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